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VERO BEACH — The proposed sale of the city's electric utility system to Florida Power & Light Co. took a significant step forward with the approval of the transaction by the Federal Energy Regulatory Commission.

"I think it is another one of the hills we had to climb and fortunately we made it across that one and we will continue moving forward," said City Manager Jim O'Connor of the commission's order authorizing the transaction that was issued Monday.

Several other approvals are needed, including one from the Florida Public Service Commission. O'Connor said he believes before a submittal is made to that commission, some type of agreement has to be reached with the Florida Municipal Power Agency, which is involved in four different wholesale power agreements with the city.

FPL is in negotiation with the power agency on a deal that potentially could get the city out of these power agreements and allow it to sell its system to FPL.

"This is a positive step forward, and we are pleased that (the federal commission) has approved the sale," said FPL spokeswoman Sarah Gatewood. "We continue to make progress on the remaining approvals. Today's decision means we are one step closer to bringing lower electric bills to Vero Beach."

Gatewood said FPL's goal is to try to have the transaction completed by late 2014.

The city and FPL need to gain approval from Florida Gas Transmission, Florida Gas Utilities, BellSouth, the Federal Aviation Administration and others to complete the transaction, but Gatewood said approval from the Federal Energy Regulatory Commission, the Florida Public Service Commission and the Florida Municipal Power Agency were the "three big ones."

Customer Steve Faherty, who along with Glenn Heran has been one of the strongest voices pushing for the sale, said the commission's approval was "a cause of joy" for all the work put in by various individuals and groups wanting to sell the utility, but added "the 800 pound gorilla in the deal is the Florida Municipal Power Agency."

Mark McCain, assistant general manager of the power agency, said the organization has been in contact with FPL to gather more information about the offer. He said in addition to its own analysis, the agency may hire an outside consultant to look over FPL's offer to the agency, which included a payment from FPL to the power agency to take on some of Vero Beach's power obligation and other incentives.

Gatewood said representatives of the two groups are "continuing to have discussions and hopefully we hope to hear something soon."

The Federal Power Act requires any acquisitions such as FPL's to first be approved by the commission. In its order, the commission finds FPL has shown the proposed transaction will not adversely affect wholesale requirements or transmission rates. The commission does not examine the effect of a proposed transaction on retail rates unless a state specifically asks the commission to do so. It said the Florida Public Service Commission did not make such a request.

The filing with the commission drew both supporters and protesters. Faherty was among those supporting the filing, while former City Councilwoman Lynne Larkin, on behalf of the Civic Association of Indian River County, argued FPL aimed to control the Florida market and squeeze out competitors. FPL rebutted the association's arguments, and the commission found FPL has shown there are no competitive concerns.

Larkin said she was pleased the association's arguments were considered, but disappointed the association didn't have enough money to hire an expert to rebut some of FPL's arguments dealing with some highly technical data.